In July 2024, the average FICO credit score remained stable at 717, despite rising consumer debt, increasing delinquencies, and a decline in new credit accounts. This stability is notable given the backdrop of growing financial pressures, including high interest rates and inflation, which have led many consumers to rely more heavily on credit cards. Although the average score has not dropped, there are signs of distress among borrowers; missed payments on credit cards have surged past pre-pandemic levels, with over 18% of borrowers experiencing late payments of 30 days or more on at least one credit account in the past year. This figure represents a 5% increase from the previous year. Additionally, the average credit card utilization rate has risen to 35%. While overall credit scores remain unchanged, the situation highlights the challenges many face in managing their finances amid rising costs and borrowing challenges.
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